Cal Am wants closure on failed desal project

California American Water is asking a judge to decide if the agreements from the failed regional desalination project are still valid or are void, and if Cal Am had the right to terminate them.

Cal Am filed a complaint for declaratory relief in Monterey County Superior Court on Thursday, and a ruling could end up assigning responsibility for the failure of the project and help determine who should bear the bulk of the estimated $32 million cost.

According to the filing, Cal Am officials believe a court determination on the agreements is "essential" because the former partners have filed claims for damages as a result of the project's failure.

Cal Am spokeswoman Catherine Bowie said it would be up to the judge to determine what extent each of the partners was responsible for the project's demise, and there's no way to predict how remaining financial issues will be resolved. But she said company officials believe the complaint is "an important step in moving remaining issues with the (regional project) to completion."

In its filing, Cal Am points out that it terminated the agreements in January only after one of its former project partners, the county Water Resources Agency, declared them void following a conflict of interest investigation and months of confidential talks that proved unsuccessful.

The conflict of interest investigation surrounded Steve Collins, a former county water board member, who was paid by a private firm for work he did on the desal project while he was a public official. Collins is facing criminal charges as a result. A preliminary hearing in that case is set for Tuesday and Thursday next week.

Cal Am points out in the filing that its other project partner, the Marina Coast Water District, argued the agreements were never invalidated and called for the project to move forward.

The state Public Utilities Commission subsequently agreed the regional project was finished and allowed Cal Am to submit a new Peninsula water project application. That project is also designed to provide a replacement supply to offset a state-ordered cutback in pumping from the Carmel River that is scheduled to take full effect at the start of 2017.